Best Tax saving scheme

POSTED BY Hanumantha G K ON July 6, 2013 8:12 pm COMMENTS (3)

Hi My package is around 5.5 lakhs. I have purchased 2 LIC plans whose premium adds up to 41,000 per year.I am left with another 60,000 to show under tax savings.I am thinking over NSC,Fixed Deposit or increasing PPF amount.I am expecting good returns also by investing rest amount.

Can anybody suggest me best way for this? 

3 replies on this article “Best Tax saving scheme”

  1. Mohit Pandey says:

    Dear Hanumantha,

    In my point of view LIC policies is just waste of money. If those policies is still in lock-in period just cancel those. I had done the same mistake 5 years back.

    For the simplicity you can use the below options:-

    1) Term Insurance ( almost 8K for 1 Crore life cover a 30 year old person)
    2) Remaining amount you can put in PPF (Max limit for PPF is 1 Lack/year) or Mutual Fund Pension Schemes, ELSS, VPF etc.

    Regards
    -Mohit

  2. Hanumantha G K says:

    Thanks Ankit.
    I dont have any knowledge of ELSS right now.I will reaserch a bit.

  3. ankit Gupta says:

    You should opt for ELSS. When market is low, invest in good ELSS mutual funds like HDFC Tax saver, HDFC Long term advantage, reliance tax saver etc.

    Do your research before investing. ELSS has lowest lock-in so invest in lumpsum rather than SIP.
    You will get good returns, lowest lockin and tax saving !!

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